Roto Pumps Ltd Management Discussions

ECONOMIC OVERVIEW

Global economy

The global economy registered a growth rate of 3.3% in 2024, marginally lower than the 3.5% achieved in 2023. This performance came despite persistent uncertainties arising from geopolitical tensions and economic challenges, particularly in Europe. Advanced economies grew by 1.8%, while emerging markets and developing economies recorded a stronger growth of 4.3% during the year. The global economy is projected to grow by 3.0% in 2025. Growth in advanced economies is expected to moderate to 1.5%, while emerging markets and developing economies are projected to grow by 4.1%. In 2026, emerging markets and developing economies are forecast to grow by 4.0%, compared with 1.6% in advanced economies, resulting in an overall global growth rate of 3.1%. (Source: International Monetary Fund, July 2025.) The outlook remains challenging, as persistent trade uncertainties, escalating geopolitical tensions, volatile fiscal conditions, and the imposition of steep discretionary tariffs continue to pose significant downside risks.

Indian economy

The Indian economy grew by 6.5% in FY25, compared to 8.2% in FY24, supported by strong consumption, higher investment and easing inflation. A robust 7.4% growth in the last quarter highlighted resilience in domestic demand and investment momentum.

During FY26, the economy has thus far maintained its resilience, with core industries posting healthy growth. Supported by sustained investment, improvement in the services sector and a revival in rural demand on the back of stronger farm activity, the Indian economy is projected to grow by 6.5%, reafirming confidence in its underlying strength despite lingering global uncertainties. However, the recent U.S. tariffs are expected to act as a dampener and could weigh negatively on growth prospects.

INDUSTRY OVERVIEW Global Industry

The global industrial pump industry is a cornerstone of critical sectors such as oil and gas, water and wastewater treatment, chemicals, power generation, and manufacturing. In 2024, the market was valued at around USD 71.3 billion and is projected to reach nearly USD 112.1 billion by 2033, reflecting a healthy CAGR of about 4.9%.

Growth is supported by rising investments in infrastructure, increasing demand for efficient _uid-handling systems, and the adoption of smart pumps with IoT-enabled monitoring and predictive maintenance features. These innovations help industries improve reliability, reduce downtime, and achieve higher energy efficiency.

Product Type Insights

By product type, the market is segmented into centrifugal pumps and positive displacement (PD) pumps. Centrifugal pumps dominate, accounting for around 65-70% of global revenue (USD 42–46 billion in 2024), due to their wide use in water supply, wastewater treatment, and industrial processing. Positive displacement pumps are valued at about USD 26.1 billion in 2024, representing roughly 30-35% of the market, with strong demand from oil & gas, chemicals, pharmaceuticals, and the food & beverage industries where precise dosing and viscous _uid handling are critical.

Application Insights

The global pump industry is witnessing sustained demand across key sectors, with growth driven by both traditional industries and emerging applications. Water and wastewater treatment continue to dominate, holding over 20% of the market and expanding at 5–6% CAGR, supported by stricter environmental regulations and urban infrastructure development. The oil and gas sector, which accounts for more than one-fifth of global demand, is projected to grow at around 4–5% CAGR, backed by upstream exploration, refinery upgrades, and LNG capacity additions.

The chemical and pharmaceutical industries are also key growth drivers, expected to expand at nearly 5% CAGR, owing to the rising demand for specialty chemicals and accurate dosing applications. Similarly, the food and beverage industry expected to grow at close to 6% CAGR, fueled by packaged food consumption and hygiene-focused processing requirements. In addition, power generation, including renewable energy applications, is advancing at about 4% CAGR, with pumps playing a vital role in cooling, hydrogen infrastructure, and sustainable energy systems. The Biogas industry is expected to grow at a CAGR of around 5–6% over the coming years.

Together, these diverse applications underline the industrys balanced growth trajectory, where traditional segments like oil & gas and water treatment are complemented by faster-expanding sectors such as food & beverages, pharmaceuticals, and renewables.

Regional Insights

The Asia Pacific pumps market is projected to witness the fastest growth till 2030, supported by rapid industrialization, infrastructure expansion, and rising demand from agriculture, petrochemicals, and water management. China remains the largest growth hub, driven by capacity expansions in the chemical, petrochemical, and construction sectors under favorable government policies. Australia is also contributing strongly within the region, with mining activity, water and wastewater treatment projects and energy infrastructure investments boosting demand. Malaysia, Thailand, and Singapore are seeing healthy growth, supported by expanding manufacturing bases, industrial investments, and government initiatives in water treatment. Singapore is placing strong emphasis on smart water management and desalination technologies, while Malaysia and Thailand are witnessing demand from chemicals, construction, and agriculture. The MENA region, often grouped under Asia in global market analysis, represents another major demand center, with pump consumption driven by large-scale investments in oil & gas, petrochemicals, desalination plants, and infrastructure projects. A Strong government focus on water and wastewater management, coupled with economic diversification programs, is expected to further accelerate pump adoption across MENA.

In Europe, growth is supported by offshore exploration activities, stringent environmental regulations, and the rising demand for municipal and industrial water treatment. Germany continues to lead with heavy investments in wastewater treatment and construction, while the UK is progressing through infrastructure upgrades, renewable energy expansion, and adoption of energy-e_cient pumping solutions. North America is expected to record steady growth, supported by oil & gas exploration, shale production, and modernization of water and wastewater treatment facilities. Rising adoption of smart and energy-e_cient pumps is further strengthening regional demand.

In South America and Latin America, growth is being fueled by investments in mining, oil & gas, agriculture, and infrastructure expansion. Increasing irrigation requirements and water management projects are creating additional opportunities for pumps in the region. The Sub-Saharan Africa market is projected to expand steadily, supported by investments in water supply, irrigation, mining and power generation projects. Rapid urbanization and government-led initiatives to improve access to clean water and sanitation are also expected to drive demand, particularly for centrifugal and submersible pumps.

Indian Industry

The Indian pump market was valued at USD 3.9 billion in 2024 and is expected to reach USD 5.7 billion by 2033, growing at a compound annual growth rate (CAGR) of around 4.5% during 2024–2033. Approximately 16% of Indias pump manufacturing output is export-oriented, and this share is projected to expand further as Indian manufacturers strengthen their global presence.

The positive displacement (PD) pumps segment accounts for about 5% of the total market and finds applications across water and wastewater, chemicals, oil & gas, and power generation. With Indias crude oil refining capacity on the rise and growing investments in midstream and downstream oil & gas infrastructure, the demand for PD pumps is expected to increase. Additionally, technological advancements that have made deep-water and ultra-deep-water exploration more feasible and cost-e_ective are likely to drive greater oil production, creating further opportunities for pump deployment till 2033.

The oil & gas sector is anticipated to witness significant growth in pump adoption, driven by declining output from mature fields, increasing investment in new exploration, and expansion in refining and petrochemical projects. Similarly, water & wastewater management, power generation, and metals & mining continue to be among the largest end-use industries for pumps in India. The biogas industry is also expected to play an increasingly important role in driving demand. In addition, emerging sectors such as lithium extraction and refining, as well as the semiconductor industry, are likely to become vital contributors to future growth.

Competitive pricing, manufacturing scalability, and the availability of skilled labor remain strong drivers of Indias pump market competitiveness. At the same time, the introduction of intelligent and smart pump systems—capable of monitoring, controlling, and optimizing _uid flow while offering failure tolerance—will help reduce total cost of ownership, creating attractive opportunities for manufacturers. A growing emphasis on after-sales services is further enabling vendors to strengthen long-term customer relationships. Indian pump manufacturers are also increasingly focusing on strategic alliances, joint ventures, and technological collaborations with global companies to enhance product quality, expand their footprint in overseas markets, and meet the rising domestic demand for advanced pumping solutions.

FINANCIAL STATEMENTS

The financial statements of your Company were prepared in accordance with the Companies Act, 2013 and the applicable Indian Accounting Standards (Ind-AS) notified by the Ministry of Corporate Affairs, with no material departures from the prescribed norms. The Management accepts responsibility for the integrity and fairness of these financial statements and confirms that estimates and judgments were applied prudently to present a true and fair view of your Companys affairs.

Resources Allocation: Non-current Assets

Non-current assets of your Company at March 31, 2025 were _ 14,014.96 lakhs against _ 13,756.63 lakhs as of March 31, 2024. Composition of non-current assets as of March 31, 2025 compared to March 31, 2024 was as under-

Property, plant and equipment

Property, plant and equipment of your Company as of March 31, 2025 were _ 8,033.93 lakhs compared with _ 8,166.82 lakhs on March 31, 2024 representing a net decrease of 1.63%.

Capital Work-in-progress

Capital work in progress of your Company as of March 31, 2025 was _ 208.20 lakhs compared with _ 0.37 lakhs on March 31, 2024, which was higher on account of new Plant & Machineries under installation and commissioning.

Right-of-use-Assets

Right-of-use-Assets of your Company as of March 31, 2025 was _ 2,866.87 lakhs compared with _ 2,933.28 lakhs on March 31, 2024.

Other Intangible assets

Other intangible assets of your Company comprise of computer software, technical drawings, trademarks and patent. Other intangible assets of the Company as of March 31, 2025 were _ 173.86 lakhs against

_ 237.81 lakhs at March 31, 2024. Net decrease was on account of amortization.

Investment in Subsidiaries

Investment in Subsidiaries of your Company as of March 31, 2025 was _ 1,963.47 lakhs against _ 1,963.47 as of March 31, 2024.

Deferred tax assets (net)

Deferred tax assets (net) of your Company as of March 31, 2025 were _ 81.09 lakhs against _ 72.26 lakhs as of March 31, 2024.

Other Non-current Assets

Other Non-current Assets of your Company comprising of capital advances as of March 31, 2025 were _ 637.54 lakhs against _ 332.62 lakhs as of March 31, 2024, which were increased due to higher capital advances.

Current Assets

Total current assets of your Company as of March 31, 2025 were

_ 16100.12 lakhs against _ 15,013.14 lakhs as of March 31, 2024. Composition of the Current assets as of March 31, 2025 compared to March 31, 2024 was as under-

Inventories

Inventories of your Company as of March 31, 2025 were _ 4,054.83 lakhs against _ 4,122.46 lakhs as of March 31, 2024 representing a decrease of 1.64%.

Financial assets

Financial assets comprise of trade receivables, cash & cash equivalents, other bank balances, loans and other financial assets. Financial assets of your Company as of March 31, 2025 were _ 9,622.55 lakhs against

_ 8,734.34 lakhs as of March 31, 2024 representing an increase of 10.17%. The increase was mainly on account of higher trade receivable increased due to higher sales and higher loans and advances due to extension of loan to wholly owned subsidiary company.

Other current assets

Other current assets of your Company as of March 31, 2025 were _ 2,422.74 lakhs against _ 2,156.34 lakhs as of March 31, 2024, which were higher on account of higher advance income tax.

Resources: Equity

Total equity of your Company as of March 31, 2025 was _ 22,051.52 lakhs as compared to _ 19,646.95 lakhs as of March 31, 2024 representing a net increase of 12.24%. Composition of equity as of March 31, 2025 as compared to at March 31, 2024 was as under-

Share capital

Share capital of your Company as of March 31, 2025 were _ 628.15 lakhs as compared to _ 628.15 as of March 31, 2024.

Other equity

Other equity of your Company comprises of securities premium, general reserve and retained earnings, which was _ 21,423.37 lakhs as of March 31, 2025 compared with _ 19,018.80 lakhs as of March 31, 2024 on account of retained earnings for the financial year.

Non-current Liabilities

Non-current liabilities of your Company as of March 31, 2025 were

_ 1,239.05 lakhs as compared to _ 1,475.94 lakhs as of March 31, 2024. Composition of Non-current liabilities as of March 31, 2025 as compared to at March 31, 2024 was as under-

Financial liabilities

Financial liabilities of your Company comprise of long-term borrowings and lease liabilities, as of March 31, 2025, the financial liabilities were _ 1,140.97 lakhs against _ 1,401.44 lakhs as of March 31, 2024.

Provisions

Provisions of your Company, comprises of provisions for employee benefits, as of March 31, 2025 were _ 98.08 lakhs against _ 74.50 lakhs as of March 31, 2024.

Current Liabilities

Current liabilities as of March 31, 2025 were _ 6,824.51 lakhs as compared to _ 7,646.88 lakhs as of March 31, 2024. The composition of the current liabilities as of March 31, 2025 compared to as of March 31, 2024 was as under-

Financial liabilities

Financial liabilities of your Company, comprises of short-term borrowings, trade payables and other financial liabilities were _ 4,281.40 lakhs as of March 31, 2025 against _ 4,712.19 lakhs as of March 31, 2024.

Other current liabilities

Other current liabilities of your Company, comprises of creditors for capital goods, advances from customers, taxes payable and dividend payable were _ 1,220.82 lakhs as of March 31, 2025 against _ 1,499.54 lakhs as of March 31, 2024.

Provisions

Provisions of your Company, comprises of short-term provisions for employee benefits, warranty and other provisions were _ 281.2 lakhs as of March 31, 2025 against _ 215.07 lakhs as of March 31, 2024.

Current tax liabilities

Current tax liabilities (Net) of your Company, comprises of provisions for income tax, were _ 1,041.09 lakhs as of March 31, 2025 against _ 1,220.08 lakhs as of March 31, 2024.

The management believes that your Companys liquidity and capital resources would be adequate to meet its expected working capital needs and other anticipated cash requirements.

FINANCIAL AND OPERATIONAL PERFORMANCE

The principal source of your Companys revenue is the sale of pumps, spares, and retrofit parts. Over the years, your Company has built a strong legacy of designing and manufacturing technologically advanced and reliable products, earning the trust of customers across geographies. The product portfolio comprises a comprehensive range of positive displacement pumps designed to serve a wide spectrum of industries, including oil & gas, biogas, chemicals, water and wastewater management, food processing, mining, and various municipal applications. Aligned with its long-term vision, your Company is steadily transforming into a _uid equipment solutions provider, offering value-added technologies and customized solutions to meet the growing and diverse needs of its customers.

During the financial year 2024-25, your Companys financial and operational performance as compared to the previous financial year 2023-24 was as follows:

Your Companys Total Income for the year 2024-25 was _ 24,375.98 lakhs, as compared to _ 23,445.20 lakhs in 2023-24, reflecting an increase of 3.97%. Revenue from operations during the year was _ 24,036.81 lakhs, as compared to _ 22,980.50 lakhs in the previous year, representing a growth of 4.60%. The increase in revenue from operations was driven by the efficient utilization of the Companys marketing infrastructure in both domestic and international markets. Other income during the year was _ 339.17 lakhs, as compared to _ 464.71 lakhs in the previous year. Your Company recorded a Profit before Tax of _ 3,977.88 lakhs during the year 2024-25 compared with _ 4,834.27 lakhs in 2023-24.

Your Company recorded a Profit after Tax of _ 3078.52 lakhs during the year 2024-25 compared with _ 3,625.28 lakhs in 2023-24.

Revenue from Operations

Your Companys income from operations comprises domestic and export sales. Revenue from operations during the year was _ 24,036.81 lakhs, as compared to _ 22,980.49 lakhs in the previous year. The product-wise revenue from operations, viz. Pumps, Spares, and Service Income, was as under –

Sale of pumps during the year was _ 13,356.61 lakhs, as compared to _ 12,822.18 lakhs in the previous year, while the sale of spares stood at _ 10,461.04 lakhs, as compared to _ 9,944.77 lakhs in the previous year. Service income was _ 30.10 lakhs, against _ 44.73 lakhs in the previous year. Other operating revenue, mainly comprising the sale of scrap materials, was _ 189.06 lakhs, as compared to _ 168.81 lakhs in the previous year.

The composition of domestic and export sales during the financial year 2024-25, as compared to the financial year 2023-24, was as under:

Domestic Sales

Domestic sales during the year were recorded at _ 9,549.86 lakhs against _ 9,870.36 lakhs, which represent a decrease of 3.25%. Composition of Domestic sales during the year as compared to the previous year was as follows-

Revenue from Sale of Pumps during the year was _ 6,308.78 lakhs against _ 6,511.20 lakhs during the previous year. Sale of Spares during the year was _ 3,031.91 lakhs against _ 3,167.60 lakhs during the previous year. Service income during the year was _ 20.11 lakhs against _ 22.75 lakhs during the previous year. Other operating revenue mainly comprises of income from sales of scrap and wastage was _ 189.06 lakhs as compared to _ 168.81 lakhs during the previous year.

Export Sales

Export Sales by product

Exports Sales during the year were _ 14,486.94 lakhs against _ 13,110.13 lakhs during the previous year, which represents a nominal increase of 10.5%. Composition of Export Sales during the year as compared to the previous year was as follows:

Revenue from Sale of Pumps during the year was _ 7,047.83 lakhs against _ 6,310.98 lakhs during the previous year. Sales of Spares during the year were _ 7,429.12 lakhs against _ 6,777.17 lakhs during the previous year. Service income during the year was _ 9.99 lakhs against _ 21.98 lakhs during the previous year.

Export Sales by Centers

Your Company executes exports sales from three Centers viz. Direct Export from India, Sales from Warehouse and Marketing Offices in Australia and United Kingdom. Export Sales from these Centers during the year as compared to the previous year were as follows-

Direct Export

Direct export sales during the year were _ 6,650.63 lakhs against _ 5,901.00 lakhs in the previous year which represents an increase of 12.70%.

Sales from Australia Branch

Sales from Australia were _ 4,015.27 lakhs as compared to _ 3,590.76 lakhs during the previous year, which was higher by 11.82%.

Sales from U.K. Branch

Sales from United Kingdom were _ 3,821.04 lakhs against _ 3,618.37 lakhs during the previous year, which was higher by 5.60%.

KEY FINANCIAL RATIOS

Key financial ratios for the financial year 2024-25 as compared to the previous financial year were as under. Clarifications on the changes are also given.

Particulars	2024-25	2023-24	Change%	Clarification in change in is more that 25%
Debtors turnover (days)	91	83	9.67	Slight ly down
Inventory Turnover (days)	63	64	-1.56	Slight improvement
Interest coverage ratio (times)	21	20	5	Increased on account of lower interest cost
Current ratio (times)	2.36	1.96	20.16	Higher current assets
Debt equity ratio (times)	0.11	0.16	-30.43	Decrease working capital facilities and repayment of Term Loans.
Operation profit margin (%)	24.47	27.58	3.11	Slight decrease
Net profit Margin (%)	12.46	15.53	-3.07	Slight reduction
Return on Net worth (%)	14.77	20.02	-5.25	Decrease was mainly due to lower profit during the year

HEALTH, SAFETY AND ENVIRONMENT

Your Company continues to comply with the Occupational Health and Safety Management System ISO 45001:2018 and the Environmental Management System ISO 14001:2015 and endeavors to further strengthen processes for a safe working environment. Your Company has a solar power installation of 995 KWp, meeting around 31% of its energy requirements from solar power. Employee health and well-being remain a foremost priority for the Company. Indoor and outdoor health check-up camps were organized periodically as a preventive healthcare measure. There were no material incidents during the year under review. Your Companys manufacturing facilities are zero-discharge.

OPPORTUNITIES AND THREATS Opportunities

Your Company has significant growth opportunities both domestically and globally. On the domestic front, expanding initiatives in biogas, water and wastewater management, solar pumping systems, oil & gas, and defence applications are expected to create increased opportunities. Globally, opportunities are emerging in the oil & gas sector in the MENA region, wastewater management in America and the UK, biogas and renewable energy in Europe and mining and mineral processing in Africa, Australia, and Latin America. Growing applications for downhole pumps and solar pumping systems further strengthen prospects in oilfield services, agriculture, and water supply. Additionally, developments in semiconductors, as well as lithium extraction and refining, are likely to open up new avenues. A complete range of pumps for the food industry, currently under development with the requisite certifications, is expected to further enhance business opportunities.

Threats

Key challenges include US tariffs on imports from India, geopolitical uncertainties, inflationary pressures, and recessionary trends in global markets. Additional risks stem from foreign exchange fluctuations, rising raw material and logistics costs, intensifying competition, and continuously evolving regulatory and environmental standards. Emerging competing technologies may pose a potential threat.

RISK AND CONCERNS

Current geopolitical and economic developments remain major concerns. The ongoing Russia–Ukraine conflict, the Israel–Palestine war, hostilities between Israel and Iran, and political instability in Bangladesh have significantly disrupted global supply chains and trade flows. In Asia, while recent tensions with China have eased compared to earlier periods, the situation continues to pose a strategic risk.

Recent US tari_ measures on imports from India and other countries are creating additional challenges for export competitiveness and reshaping global trade patterns. These risks, combined with recessionary trends in Europe and inflationary pressures in the US (though easing in recent months), continue to weigh on global growth and contribute to currency fluctuations.

Your Company operates across major international markets, and any adverse geopolitical, trade, or economic developments could impact operations, supply chain efficiency, and performance. Additionally, emerging environmental and sustainability regulations may influence product development and market positioning. The Company remains focused on closely monitoring these risks, strengthening supply chain resilience, and safeguarding long-term value creation in a challenging global environment.

INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY

Your Company has adequate systems on internal controls implemented by the management to achieve higher efficiency across all areas of operations. These controls are designed to provide reasonable assurance regarding the maintenance of proper accounting records, monitoring of operations, safeguarding of assets against unauthorized use or losses, ensuring compliance with regulations, and maintaining the reliability of financial reporting.

Your Company has adopted SAP software to strengthen its controls and processes, which has already been implemented in the India operations. It has also been rolled out at the overseas establishments in the UK and Dubai and is being implemented in other overseas locations in a phased manner. Furthermore, the scope of SAP is being extended to cover additional operational activities and reporting structures where it was introduced. Full implementation of SAP will enable the integration of multiple locations onto a single platform, creating significant synergies and enhancing overall organizational efficiency. The Audit Committee of the Board of Directors regularly reviews the adequacy of internal controls and takes necessary corrective measures wherever required.

RESEARCH & DEVELOPMENT

Research & Development Centre of your Company had been recognized by the Department of Scientific & Industrial Research, Ministry of Science & Technology, Government of India. During the year, your Company has incurred a total amount of _ 274.89 lakhs towards revenue expenses only which constitutes 1.14% of the revenue from operations of the Company. Previous year, it was _ 246.75 lakhs and _ 19.87 lakhs towards revenue expenses and capital expenses, respectively, totalling to _ 266.62 lakhs, which constituted 1.16% of the revenue from operation of the Company.

HUMAN RESOURCES & INDUSTRIAL RELATIONS

In order to sustain growth under competitive conditions, the Human Capital of the Company should have high level of motivation and knowledge. The Company continues to focus and invest in human resources development to provide an open work culture and rewarding career opportunities to all its employees. During the year, your Companys HR division successfully recruited 47 people (replacements as well as new joining) in response to various business needs. Manpower strength as of 31.03.2025 was 548. The overall employee relations were peaceful and harmonious throughout the year. The Company continued to create conducive work environment with opportunities for growth and learning, by implementing robust and comprehensive HR policies.

FUTURE OUTLOOK

The global pump industry is expected to witness steady growth, supported by rising demand in oil & gas, mining, wastewater management, biogas, and renewable energy. Infrastructure expansion, stricter environmental norms, and the shift towards energy-e_cient solutions are further driving opportunities across both developed and emerging markets.

However, the time ahead will be quite challenging with geopolitical tensions, supply chain disruptions, tari_ uncertainties, and inflationary pressures in the US and Europe impacting global growth. While the domestic economy remains resilient, reliance on exports exposes the Company to risks from exchange rate fluctuations and evolving trade policies.

Your Company is strategically positioned to leverage these trends with its global footprint and the strong manufacturing and marketing infrastructure with presence in five continents besides strong Research

& Development setup, experienced and motivated Manpower. On the domestic front, strong economic momentum in India, along with opportunities in biogas, solar pumping systems, and defence applications, are expected to support growth. New product lines, downhole pumps and the solar pumping systems will also enhance the Companys offerings. In line with your Companys vision, medium term goal is to attain a revenue of USD 100 million by FY2028 and the long-term goal would be to attain a prominent position and to be among the first five Global Positive Displacement Pump Manufacturers.

CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Companys objectives, expectations, or predictions may be forward-looking within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied in such statements. Important factors that may influence the Companys operations include changes in government regulations, tax laws, and economic developments within and outside the country, among others.

	For and on behalf of the Board of Directors
	Harish Chandra Gupta
Place: Delhi	Chairman & Managing Director
Date: 14.08.2025	DIN: 00334405